London: Offshore driller Ensco has announced that ConocoPhillips has provided notice of termination for a three-year drillship contract.
The 2014-built ENSCO DS-9 had been scheduled to commence the drilling contract for ConocoPhillips in the fourth quarter of this year. ConocoPhillips is now obligated to pay termination fees monthly for two years at a day rate of around $550,000. The fees may be partially defrayed should Ensco re-contract the rig within the two years. ConocoPhillips is also obligated to reimburse costs that Ensco has incurred due to the termination.
The drillship had been scheduled to commence its initial drilling contract for ConocoPhillips in the fourth quarter of this year.